A Dongfeng Motor Corp. executive said the state-owned Chinese automaker, which is linked to a potential stake purchase in PSA should first look at whether such a move makes sense.
According to people familiar with the matter, PSA is considering stake sales to Dongfeng and the French government to gather additional funding as car sales in Europe plunge to a 20-year low.
“It’s too early to talk about whether we have NDRC’s approval to go ahead with talks,” Zhu Fushou, general manager of Dongfeng Motor, said at an auto forum in Wuhan, China, where the automaker is based. “What matters here is not NDRC’s approval, it is whether the project is reasonable or not.”
Zhu’s comments signal that Dongfeng has yet to get permission from the Chinese government on Peugeot. The French government is monitoring talks with Dongfeng and may participate should the Chinese automaker decide in favor of a purchase, two of the people familiar with the matter said this month. The negotiations are at an early stage and not expected to be completed for several weeks, they said.
China, home to more than 110 auto brands, has said it will curb the increase in auto manufacturing capacity and encourage mergers and reorganizations in the industry to create three to five domestic carmakers that can compete with companies like GM.
) - Thursday, October 17th, 2013 - filed under Citroen
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